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Oil! Massive shale discovery in Texas

By on 8 Sep 2016 in news, notable posts with 0 Comments
Oil! Massive shale discovery in Texas

(CNN) Apache ( APA ) revealed the huge find this week after more than two years of stealthily buying up land, extensive geological research and rigorous testing.

The Houston company estimates the discovery, dubbed “Alpine High,” could be worth at least $8 billion.

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OPEC Monthly Oil Market Report August 2016

By on 22 Aug 2016 in news, notable posts with 0 Comments
OPEC Monthly Oil Market Report August 2016

(peakoilbarrel.com) When oil fell below $30 a barrel earlier this year, banks turned away from lending to energy companies. The price of crude has bounced back more than 80% from its February low, but banks are still wary.

Big banks cut loans to the energy sector by about 3% in the second quarter over all and some individual lenders pulled back much more, according to an analysis of July and August securities filings by Barclays analysts.

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Oil prices slip as short-covering rally fizzles

By on 8 Aug 2016 in news, notable posts with 0 Comments
Oil prices slip as short-covering rally fizzles

(Reuters) A worker walks at Nahr Bin Umar oil field, north of Basra, Iraq December 21, 2015. Oil prices dipped on Friday, ending a two-day rally, as a glut of crude and refined products weighed on markets and investors eyed a possible stutter in China’s imports.

U.S. West Texas Intermediate (WTI) crude futures CLc1 fetched $41.74 per barrel at 0930 GMT (0530 ET), down 19 cents from their last close, after trading as low as $41.44 earlier in the day. They were on track roughly to break even on the week.

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Analysis

Oil glut seen extending into 2017 on weaker demand

By on 13 Sep 2016 in analysis, notable posts with 0 Comments
Oil glut seen extending into 2017 on weaker demand

(Toronto Star) The much-anticipated rebalancing of oil markets appears to be a bit further away after the International Energy Agency revised its forecast, trimming its expectations for the growth in oil demand and citing near-record production by OPEC’s Middle East exporters.

The IEA said Tuesday that global oil demand is rising at a slower pace than expected, lowering its forecast by 100,000 barrels a day to an increase of 1.3 million barrels a day in 2016 and 1.2 million barrels a day in 2017.

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Are Shale-Oil Companies Starting to Weather the Crude Slide?

By on 5 Aug 2016 in analysis, notable posts with 0 Comments
Are Shale-Oil Companies Starting to Weather the Crude Slide?

(Wall Street Journal) A truck used to carry sand for fracking is washed in a truck stop on February 4, 2015 in Odessa, Texas. … Debt from U.S. shale companies has held its ground even as oil prices have beat a fast retreat, a sign the firms may have adapted to an era of cheaper crude and could remain key suppliers to the market.

A build-up in stockpiles of oil has renewed downward pressure on prices: U.S. crude is now at roughly $42 the barrel, 14% below where it was at the beginning of June, when it appeared to be rallying.

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The One Chart That Shows Why Oil Prices Have To Keep Rising

By on 28 Jun 2016 in analysis, notable posts with 0 Comments
The One Chart That Shows Why Oil Prices Have To Keep Rising

(oilprice.com) There has been a lot of pessimism among oil investors in recent months, and indeed the bear market over the last couple of years in black gold has destroyed many nest eggs. With that said, oil investors who have run for the hills could find themselves regretting that decision in the months and years to come.

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Viewpoints

What Hubbert Got Really Wrong About Oil

By on 8 Sep 2016 in notable posts, viewpoints with 0 Comments
What Hubbert Got Really Wrong About Oil

(Forbes) If you happen to be someone who is interested in the topic of “peak oil”, you know the name M. King Hubbert.

The history of the scientific study of peak oil dates to the 1950s, when Hubbert, a Shell geophysicist, reported on studies he had undertaken regarding the production rates of oil and gas fields.

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Is the Oil Industry Dying?

By on 10 Aug 2016 in notable posts, viewpoints with 1 Comment
Is the Oil Industry Dying?

(psmag.com) Talking about “peak oil” can feel very last decade. In fact, the question is still current. Petroleum markets are so glutted and prices are so low that most industry commenters think any worry about future oil supplies is pointless. The glut and price dip, however, are hardly indications of a healthy industry; instead, they are symptoms of an increasing inability to match production cost, supply, and demand in a way that’s profitable for producers but affordable for society. Is this what peak oil looks like?

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The Death of OPEC

By on 26 Jul 2016 in notable posts, viewpoints with 0 Comments
The Death of OPEC

(Project Syndicate) The Organization of the Petroleum Exporting Countries is dead. Saudi Arabia killed it. Now, OPEC is just a toothless zombie, attracting attention, but without having any impact on the living.

Few have noticed OPEC’s demise for a simple reason: it never really had the impact that it was widely perceived to have. It was never actually a cartel, possessing monopolistic market power. Anyone who thought otherwise was mistakenly attributing to it Saudi Arabia’s market power.

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Other Recent Posts

The State of Nuclear Power Plants

By on 14 Aug 2017 in quotes with 0 Comments

[After two nuclear plants in South Carolina were cancelled:] “We continue to believe that the problem with new nuclear (small modular units excepted) power plants is not that they generate electricity with nuclear fission. The difficulty is economic. The nuclear units are expensive, base load generating units in a world where production of electricity is becoming less expensive and increasingly decentralized. Base load power plants (and especially nuclear ones) are, in general, must-run, inflexible price takers. Going forward there will be less need for those facilities regardless of how they are fueled. Furthermore, the builder of a nuclear plant must bet an enormous sum on the need for electricity a decade hence, when the plant is completed. Given the uncertainty in power demand and prices, that is a gamble uncompensated in the regulatory process.

By Leonard Hyman and William Tilles for Oilprice.com

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Peak Oil Review – 14 Aug 2017

By on 14 Aug 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 14 Aug 2017

It has been two weeks of mixed signals as to the course of oil prices. Last week prices fell around 1.5 percent, closing at $48.82 in New York on concerns that the OPEC/NOPEC collation was not following through on its pledge to cap production. Even though US stocks continue to fall, much of this is due to increasing exports of light oils and finished oil products and not to increased domestic demand. On Friday, the IEA said that although the oil markets were slowly balancing, it is not going quickly. OPEC and other friends of higher oil prices continue to release optimistic reports, but the consensus seems to be that oil prices will stay around their current levels for the rest of the year unless there is a major geopolitical upheaval.

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CEO of Royal Dutch Shell on the future of electric vehicles in developed and developing nations

By on 31 Jul 2017 in quotes with 0 Comments

“Even if the UK, France and the Western world, in general, will all go to 100 percent electric vehicles, that would be great, but that wouldn’t be enough…We still have less advanced economic economies that cannot do that switch.”

Ben van Beurden, CEO of Royal Dutch Shell (7/28)

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Peak Oil Review – 31 July 2017

By on 31 Jul 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 31 July 2017

Oil prices were strong last week with New York futures closing about $4 a barrel higher for the week at $49.71 and London at $52.52. Behind the move was another unexpectedly large decline in US stockpiles of 7.2 million barrels. This decline was brought about by a high level of US refinery consumption of almost 17.3 million b/d of crude the week before last. This was 620,000 b/d higher than in the comparable week in 2016. A reduction in Saudi shipments to the US was also seen as responsible for the unusually large decline in inventories.

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Senior Vice President of Maritime Services at Maersk Line Ltd. on Price Break Point for Arctic Oil

By on 24 Jul 2017 in quotes with 0 Comments

“The fact is, oil at $50 a barrel makes Arctic oil uncompetitive. In terms of what’s going to happen down the road, I saw a World Bank report placed the oil in nominal dollars at $80 a barrel in 2030. That’s still way below break the price for Arctic oil.”

Stephen M. Carmel, senior vice president of Maritime Services at Maersk Line Ltd. (7/21)

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Peak Oil Review – 24 July 2017

By on 24 Jul 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 24 July 2017

The markets remain confused about the future of oil prices as analysts attempt to interpret alternating bullish and bearish signals. Last week prices rose on Tuesday and Wednesday while falling on Monday, Thursday, and Friday leaving US futures at $45.77 or about $1 below where they started the week.  With the US now exporting circa 1 million barrels of oil each day and imports up only about 300,000 b/d over last year, US stocks have been falling of late.  There has been some increase in US consumption, but a rapid rise in US oil product exports is clouding the picture as to whether the high levels of US refinery output are being consumed domestically or being shipped abroad.

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Divergent views on Plug-In Hybrid Vehicles

By on 17 Jul 2017 in quotes with 0 Comments

“What oil companies and car companies are saying [about future sales of plug-in vehicles] is diverging.  This is a trillion-dollar question, and someone is going to be wrong.”

Colin McKerracher, head of advanced transport analysis for Bloomberg New Energy Finance

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Peak Oil Review – 17 July 2017

By on 17 Jul 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 17 July 2017

Oil prices climbed steadily last week, ending up Friday about $5 a barrel higher in New York at $46.54 with London the usual $2.50 or so higher. Although market concerns about oversupply have not gone away, a 7.6-million-barrel decline in US crude stocks and better demand from Europe and China was enough to keep the markets climbing higher. Rising prices were kept in check, however, by the continuing increases in oil production in the US, Canada, Libya and Nigeria. There are also concerns that adherence to the OPEC production cut is slipping and many traders are losing confidence in OPEC’s ability to balance the markets with the current level of effort.

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US Energy Secretary Rick Perry on the supply and demand dynamics of coal

By on 10 Jul 2017 in quotes with 0 Comments

“Here’s a little economics lesson, supply and demand: You put the supply [more coal] out there and the demand will follow that.”

US Energy Secretary Rick Perry, who was criticised by economists who point out that, typically, supply follows demand

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Peak Oil Review – 10 July 2017

By on 10 Jul 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 10 July 2017

Last Monday, oil prices rose for the eighth consecutive session closing in New York at $47 a barrel and setting a record for the longest gaining streak in nearly eight years. This surge came on speculator concerns that increases in US shale oil production were starting to slow. The rest of the week was mostly downhill with NY futures closing at $44.23. The slide came among reports that OPEC was not interested in further price cuts; a resumption of the increase in the US oil-rig count of seven rigs, adding to the run of 23 weeks of steady gains before the count fell by one the week before last; US crude production and exports continuing to gain; and OPEC exports increasing by 220,000 b/d in June to 32.49 million b/d.

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